KUALA LUMPUR: Malaysia's money services business (MSB) industry is expected to grow by 10% to RM130.35 billion this year, up from RM118.5 billion in 2016, mainly lifted by growth in the wholesale currency business.
Malaysian Association of Money Services Business (MAMSB) president Ramasamy Veeran said the wholesale currency business is expected to increase by 40% to RM15 billion.
Ramasamy told a press conference in conjunction with the Third Money Services Business Asia Pacific Conference 2017 in Kuala Lumpur on Tuesday that the money changing segment is also expected to advance by 10% to nearly RM80 billion this year from RM73.5 billion in 2016, mainly supported by Malaysia's improving tourism sector.
However, on the remittance segment, he anticipates it to fall by 7% to RM32 billion from the RM34.4 billion recorded previously.
"We see a tendency among foreign workers holding back their money at the banks at the moment due to the weaker ringgit," he said.
Ramasamy also said high transparency had contributed to the low cost of remittance for the MSB industry.
"The open competition in Malaysia's remittance business makes it more transparent. I believe Malaysia's remittance cost is among the lowest in the region," he added.
Malaysia registered an average cost of 2.85% in remittance for MSBs last year, lower than the 5% target set by the World Bank.
Ramasamy said MAMSB is expected to launch its mobile application next month to educate customers on MSB services.
It will also provide an easy access to information on our members' services, report any unauthorised channel and source for critical information on currencies and remittance.
Meanwhile the two-day conference, themed, "Harnessing Innovation for the Sustainability of the MSB Industry", aims to provide a platform for industry players to discuss various innovative solutions and technological advancements. - Bernama
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